SPECIAL COVERAGE
CHANDIGARH

LUDHIANA

DELHI



THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

Free cash withdrawals from April 1
New Delhi, March 29
Come April 1 and you need not have to sweat it out looking for an ATM of your own bank as you can use ATMs of your choice without shelling out any extra money. Thanks to an RBI directive, much to the relief of common man, banks have been prevented from charging any fee for cash withdrawals using ATM and debit cards issued by other banks from April 1 onwards.

Mittal threatens to stop work on Bathinda refinery
New Delhi, March 29
Steel czar Lakshmi N Mittal has threatened to stop work on the Rs 18,919-crore oil refinery project at Bhatinda in Punjab unless the state government restored fiscal incentives it had taken away a few years ago.

2009 will be make or break year
Warsaw: With the steel industry shrouded in doom and gloom, Arcelor Mittal chairman Lakshmi Mittal may have to make major adjustments in his steel empire this year, say industry watchers. Arcelor Mittal is the world's largest steel producing company and it has several plants in Western Europe, Eastern Europe, including Poland where it controls 70 percent of steel production, South Africa and Brazil.



EARLIER STORIES


Market Update
Markets recover a mid subsiding risk aversion
The stock markets displayed a distinctly strong trend last week as the benchmark indices jumped over 10 per cent, on a host of positive global factors. FIIs (foreign financial investors) were heavy buyers last week as risk aversion subsided a little globally.

Tax Advice
Income above Rs 1.5 lakh? Don’t file Form 15G
Q. I am a student of Information Technology. I am major and have fixed deposits with a bank. Interest income on the fixed deposit will be about Rs 2 lakh during the financial year 2009-10. Is it Rs 1.4 lakh during the financial year 2008-09. As my income 2008-09 is less than Rs 1.5 lakh, I need not file any income tax return. However, my income of interest will be Rs 2 lakh in next year 2009-10, I will have to file I.Tax return. My query is:

 






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Free cash withdrawals from April 1

New Delhi, March 29
Come April 1 and you need not have to sweat it out looking for an ATM of your own bank as you can use ATMs of your choice without shelling out any extra money. Thanks to an RBI directive, much to the relief of common man, banks have been prevented from charging any fee for cash withdrawals using ATM and debit cards issued by other banks from April 1 onwards.

However, banks can still charge extra for services like cash withdrawal with the use of credit cards and at ATMs located outside India.

Last year on March 10, the RBI had come out with guidelines limiting the fee charged by banks for using their ATMs by clients of other lenders to Rs 20. It had also allowed the use of ATM for purposes like balance enquiry free of any charge.

This was to ensure greater transparency and to facilitate usage of any ATM installed within the country by customers without shelling out more, the central bank had said.

At present, banks charge Rs 20 per transaction when a customer uses the cash machine of any bank other than the one in which he/she has an account with.

At the end of December 2007, there were 32,342 ATMs in the country and various banks have entered into bilateral and multi-lateral arrangements with other banks to have inter-bank ATM networks. — PTI

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Mittal threatens to stop work on Bathinda refinery

New Delhi, March 29
Steel czar Lakshmi N Mittal has threatened to stop work on the Rs 18,919-crore oil refinery project at Bhatinda in Punjab unless the state government restored fiscal incentives it had taken away a few years ago.

Mittal is believed to have written to the Prime Minister Manmohan Singh seeking his “personal” intervention in the issue that has threatened the viability of the nine million tons a year refinery project.

Sources said Mittal earlier this month had written to the Prime Minister demanding fiscal concessions at par with what the Madhya Pradesh government has given to the Bharat Petroleum-promoted Bina refinery project.

Without the fiscal concessions like sales tax waiver on fuel it produces, the landlocked refinery was not viable and Mittal is not wanting to put more funds beyond the initial Rs 500 crore he had paid for equity, they said.

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2009 will be make or break year

Warsaw: With the steel industry shrouded in doom and gloom, Arcelor Mittal chairman Lakshmi Mittal may have to make major adjustments in his steel empire this year, say industry watchers. Arcelor Mittal is the world's largest steel producing company and it has several plants in Western Europe, Eastern Europe, including Poland where it controls 70 percent of steel production, South Africa and Brazil.

The ongoing recession has hit London-based Mittal - Britain's richest man and one of its most flamboyant families - in a big way and his assets have plummeted to £17 billion from £65 billion in less than six months.

According to a report published in Polish Monthly, the net debt is around £19 billion and he has to raise £4billion to meet the expenses. At the moment Mittal is putting up a brave face and is trying his best to convince his shareholders that he will manage the difficult times with his managerial skills. — Agencies

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Market Update
Markets recover a mid subsiding risk aversion
by Lalit Batra

The stock markets displayed a distinctly strong trend last week as the benchmark indices jumped over 10 per cent, on a host of positive global factors. FIIs (foreign financial investors) were heavy buyers last week as risk aversion subsided a little globally. The bulls also shrugged off negatives like the uncertainty over elections, ballooning fiscal deficit, a sluggish economy and deceleration in corporate profits. A steep fall in the India’s inflation also raised expectations of a further easing of the monetary policy by the Reserve Bank of India.

The Sensex jumped 1,888 points (23 per cent) in 12 trading sessions from a three-year closing low of 8,160 on March 9. Going forward, a near term upside on the domestic bourses is capped as traders may cash in on gains after a recent solid surge in share prices. The sudden surge in the prices may also be attributed to sudden short covering by the traders ahead of the expiry of the near-month March 2009 contracts, last week. Parliamentary elections scheduled to be held in April-May will continue to be a overhang on the market as there is a little prospect of a single party winning a majority on its own. Analysts feel the possibility of a disparate coalition government will be a potential risk, and could worsen an economic slowdown.

Glenmark Pharma

The stock price of Glenmark pharma has taken a beating after the announcement of Eli Lilly’s discontinuation of clinical trials on Glenmark’s molecule GRC 6211 for the treatment of pain, which had raised fears of likely cracks in the latter’s research programme. This coupled with weak markets has led to a steep decline in the stock price of Glenmark from a high of Rs 761 to currently at Rs 151. Investors with a three-year horizon may buy the stock at current levels.

Glenmark’s strategy to focus on niche therapeutic areas in the highly competitive US generics market is expected to significantly bolster sales from this region. The company has one of the most enviable research pipelines as compared to its domestic peers. The fact that it has been able to strike lucrative deals with global pharma innovators also speaks volumes about its pipeline. Focus on branded generics in India, Latin America and the semi-regulated expected to enhance overall revenues and profits in the future. The company has been following the strategy of out-licensing its molecules to global companies in return for milestone payments depending upon the progress of the molecule.

The economic slowdown has impacted Glenmark, the chief fallout of which is the likelihood of a delay in terms of securing out-licensing deals with global pharma majors as the latter will now be more cautious in doling out payments. Another risk from the current global economic downturn especially, in the semi-regulated markets, the sharp devaluation of currencies led to destocking of drugs at the stockiest level as the cost of purchasing these medicines increased. This in turn impacted Glenmark’s sales. While, in the long term, the business is expected to remain robust, these hiccups are likely to affect the company’s performance in the near term.

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Tax Advice
Income above Rs 1.5 lakh? Don’t file Form 15G
by S.C. Vasudeva

Q. I am a student of Information Technology. I am major and have fixed deposits with a bank. Interest income on the fixed deposit will be about Rs 2 lakh during the financial year 2009-10. Is it Rs 1.4 lakh during the financial year 2008-09. As my income 2008-09 is less than Rs 1.5 lakh, I need not file any income tax return. However, my income of interest will be Rs 2 lakh in next year 2009-10, I will have to file I.Tax return. My query is:

Is it in order to give Form 16G to my banker so that no tax is deducted at source and after sometime, I will deposits Rs 50,000 in bank fixed deposit or PPF A/c under Section 80C of the Income-tax Act to avoid tax above exempted income of Rs 1.50 lakh for individual assuming tax rate and exemption limit for financial year 2009-10 will remain the same.

— Sahil Talwar, Panchkula

A. Form 15G can be filed by an assessee whose interest income is less than the maximum amount not chargeable to tax. The income from interest estimated by you is Rs 2,00,000 which is more than Rs 1,50,000 being the applicable limit in your case. It would not be possible for you to file Form 15G with the bank. I may add that your income being above the maximum amount not chargeable to tax, it is incumbent upon you to file the return of income even if the same becomes below taxable limit after claiming deduction under Section 80C of the Act. Further, it is Form 15G (not Form 16G) which has been prescribed by the Act for the purpose of claiming that no deduction of tax at source be made in such cases where the interest income is below the maximum amount not chargeable to tax.

Senior citizen

Q. I am a senior citizen aged 72. I have total income of Rs 4 lakh detail of which is as:

(1) Pension 1,40,000

(2) Interest income 2,60,000

Total 4,00,000

1. I have invested Rs 1 lakh under Section 80C in Bank deposits with my banker.

2. Tax is payable on balance of Rs 75,000 at 10.3 per cent

3. I have given Form 16H to my banker not to deduct any tax on interest earned/accrued. Instead I deposited Rs 3,000 before September 15, again Rs 3,000 before December15 and balance Rs 2,000 before March 15 will be deposited as advance Tax.

4. My query is it is in order to do so.

5. I am filing my I return form the last 20 years.

— JL Talwar, Panchkula

A. Form 15H can be filed by a senior citizen if the tax on his estimated total income of the previous year in which such income is to be included in computing the total income will be nil. In your case, the income being much more than the maximum amount on which tax is not chargeable, you are not entitled to file form 15H.

Death gratuity

Q. Please clarify:

1) I have received the following payments from LIC, bank, post office etc. due to death of my unmarried daughter who was working with LIC.

(i) Death gratuity

(ii) Leave encashment

(iii) Insurance

(iv) Group insurance

(v) Amount with L.I.C. employee co-op. society as member

(vi) Closure of post office saving bank A/c

(vii) Bank fixed deposit

2) My daughter had given loan to a cousin and she has returned Rs 5,000 to me.

3) My daughter had purchased a car of Rs 2,78,000 on March 14, 2007, as loan and I had paid Rs 1,20,850 as loan after her death and sold the car for Rs 2,15,000.

I received Rs 17,000, 400 of arrears of my pension in financial year 2008-09. Whereas total arrears from April 1, 2006 to September 30, 2008, comes to Rs 42,000. In the financial year whether Rs 17,000 or Rs 42,000 will be included in my income for the financial year 2008-09.

1. Kindly guide me whether these payments will be included in my income or not?

2. If not how these payments are shown in my income tax return?

3. Type of return format to be used.

— Sohan Pal

A. Your queries are replied hereunder:

a) The amount received in respect of leave encashment if in excess of the permissible limit and the interest on fixed deposit after the date of death to the to the year ending on March of the relevant previous year would be taxable in the hands of the legal heirs of the deceased.

b) In case you are the only legal heir of your daughter, the amounts received except that mentioned in (a) above would be shown as exempt from tax.

c) The arrears of pension would be taxable for the year in which such arrears are received.

d) The applicable return form in your case would be ITR-1.

Family pension

Q. You had mentioned in a query that family pension is the property of the deceased and should be divided in equal shares amongst legal heirs as per the Succession Act.

I am drawing family pension of my wife who died without a will. We are three legal heirs of the deceased, all major and well settled in life. Under the family pension rules no one except me (being the husband) is entitled to get family pension.

Will the family pension admissible to me as per govt. pension rules, be divisible amongst all the heirs for the purpose of income-tax rules?

— Dev Raj Aggarwal, Ludhiana

A. Family pension is normally meant for the family members of the deceased. The reply was, therefore, based on the aforesaid assumption. The issue with regard to the division of family pension would also depend upon the scheme applicable to the deceased. The fact that you are the only person to receive the pension can be interpreted to signify that you had been nominated by your wife to receive the family pension. I would, therefore, request you to examine the provisions of the scheme. The issue with regard to the division amongst all the family members would depend upon the provisions of the scheme.

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BRIEFLY



Actress Deepika Padukone walks the ramp for ‘Mai Mumbai’ show on the second day of the Lakme Fashion Week, in Mumbai on Saturday. — PTI

AI’s Delhi-Chicago daily flight
NEW DELHI:
National carrier Air India Sunday launched its daily Delhi-Chicago flight via Frankfurt, the airline's official said. The flight took off around 1.50 a.m. Sunday, the airline spokesperson Chandra Kumar said. “We had 274 passengers on board, of which 24 were for the business class. The response is quite encouraging. We had about 80 per cent occupancy for the inaugural flight,” Kumar said. Air India has deployed a state-of-the-art 342 seater B777-300ER aircraft configured in three classes for the its Delhi-Chicago sector.

IIM-A increases fee for PGPM
AHMEDABAD:
The IIM-A has increased fee for its Post Graduate Programme in Management (PGPM) by Rs 50,000 from the year 2010-11, institute director Samir Baura said here on Sunday. “Last year we had decided that the fee for PGPM for 2008-09 would be Rs 5.5 lakh and for 2009-10 it would be Rs 6 lakh. The board decided that the fee for year 2009-10 for the incoming batch will remain the same,” he said.

Dabur revamps sales structure
NEW DELHI:
Dabur India is undertaking a major revamp of its sales force by dividing them into separate independent units for foods, home and personal care and health care categories. “We are launching a range of products this year. So in order to increase sales of these products and grow our market share in each of the categories in a faster rate, we are introducing our new sales structure,” it said.

Google on hiring spree
NEW YORK:
Internet search major Google is hiring for more than 350 positions worldwide, including over 20 in India, even as the entity is trimming its workforce. According to job postings on its website, Google has over 350 job openings globally in different areas such as advertising sales and enterprise, engineering operations, finance, human resources and software engineering.

RPG Life rejigs biz strategy
MUMBAI:
RPG Life Sciences, a part of the diversified Harsh Goenka-led RPG Group, aims to more than double its turnover to Rs 400 crore by FY'12 and has rejigged its business strategy towards the formulations business, a top company official said.

Source: Agencies

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